UDRI Launches A New Program To Help Local Manufacturers

It’s been a year in the making, but on February 11, 2003 it became a reality when Mr. Bill Lukens, President of Stillwater Technologies, Inc. and past president of the Tool Valley Network, became the first member of the Manufacturer’s Business Utility (MBU).

“Bill is one of several industry people that have coached us on the needs of local manufacturers and what business approach would be accepted,” said Paul Piechota, a UDRI employee and the Director of the MBU. “Putting this together has been a collaborative effort.”

The University of Dayton Research Institute (UDRI) along with Lighthouse Technologies, Inc. took on the challenge from industry to help reverse a well-documented trend in domestic manufacturing -- declining market share. The MBU solution is based on the premise that technology can increase a domestic producer’s ability to compete against low-cost overseas labor. The problem is that most manufacturers are small and have difficulty both affording what they need to get started and keeping up with rapid technological changes. Consequently, most simply postpone significant technology investments indefinitely.

In explaining the motivation for the MBU, Piechota stated that, “U.S. manufacturers are great at making high-quality products. But when it comes to managing the information flow throughout the entire business, most still do things the old fashioned way. With regard to technology, Stillwater is one of the more progressive companies. But there are a number of ways we can help them become more efficient with their information. Other companies will literally be starting from scratch.”

Helping manufacturers integrate automated information channels into their business is the role of the MBU and includes the following objectives:

• Lower Costs -- Negotiate steep vendor discounts, similar to a purchasing cooperative, to bring technology costs in line with budgets of small- to medium-sized manufacturers.
• Promote Scalability -- Establish a business model similar to cable television that allows manufacturers to adjust IT expenses in response to changing economic conditions. (e.g. basic, premium, and pay-per-use) as they need enhanced or increased technology.
• Increase Revenue -- Migrate participants toward compatible information platforms to facilitate business-to-business communication, which in turn facilitates inter-company team building as a strategy to capture more market share.

Preserving America’s manufacturing base is a local, state, and national priority -- skilled labor and technology are the keys to success. In southwest Ohio, the vehicle of that success came to life as the Manufacturer’s Business Utility.

For more information, please contact Paul Piechota at UDRI (937-229-5358).

March 2003

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